Now malls, restaurants to remain open all days

The Cabinet approval, however, does not mean it has become a law as the onus will be on the state governments to adopt the central government’s proposed model Act for retailing. The act will also not go to the Parliament as it is just a model legislation and is not binding on states.ETRetail | Updated: June 29, 2016, 14:23 IST

The Cabinet approval, however, does not mean it has become a law as the onus will be on the state governments to adopt the central government’s proposed model Act for retailing. The act will also not go to the Parliament as it is just a model legislation and is not binding on states.

Retailers say that when fully adopted, it will give a boost to retailing in India.

Retailers Association of India (RAI), a group representing hundreds of India’s brick-and-mortar retailers, estimates the model Act will add about 6% to India’s $600 billion annual retailing market if all states adopt the recommendations of the Model Shops and Establishments (Regulation of Employment and Conditions of services) Act, 2015.

“States do adopt such laws. This will ensure that customers can shop whenever they want to shop, retailers are able to open whenever customers are available, and it will improve employment,” said Kumar Rajagopalan, chief executive of RAI.

In March, Maharashtra had issued a notification allowing shops and malls to remain open 365 days a year till 10 p.m. States including Karnataka and Andhra Pradesh have also come up with similar amendments to their shops and establishment rules.

Modern retailers say Maharashtra, Karnataka and Andhra Pradesh have gone a step further and tried to create better working environment for modern retailing business by creating single-window clearance system for various licences required to operate stores.